Factors influencing the behavior of young investors’ investment decisions: The emerging market analysis

Download This Article

This work is licensed under a Creative Commons Attribution 4.0 International License.

Abstract

The objective of this study is to examine the impact of financial literacy, locus of control, and technological advancement on the investment behavior of young investors when making decisions in the Purwokerto City of Indonesia Stock Investors group members. This study employs a quantitative methodology and questionnaire-based data collection techniques. Using a technique of purposive sampling on the population of 272 members of the Purwokerto City of Indonesia Stock Investors group, the sample for this study consisted of 105 individuals. The findings of statistical analysis of data utilizing multiple linear regressions show that financial literacy has a positive effect on investment decisions, locus of control has no effect on investment decisions, and technological advancement has a positive effect on investment decisions. With limitations such as the population only from one city of Indonesia, i.e., Purwokerto, this study contributes to advancing knowledge, particularly in financial accounting research, more specifically to evaluate factors affecting behavioral young investors in investment decision-making. Therefore, it is expected to benefit future research on a similar topic.

Keywords: Financial Literacy, Locus of Control, Technological Advancement, Investor’s Behavior, Investment Decision-Making

Authors’ individual contribution: Conceptualization — Y.N.F., C.A.M., and E.S.; Methodology — I.S. and A.W.; Writing — Original Draft — Y.N.F., C.A.M., and E.S.; Writing — Review & Editing — I.S. and A.W.; Supervision — I.S. and A.W.; Project Administration — I.S. and A.W.; Funding Acquisition — A.W. and E.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G32, G34, M41, M48

Received: 21.12.2022
Accepted: 31.05.2023
Published online: 01.06.2023

How to cite this paper: Farida, Y. N., Matin, C. A., Suyono, E., Suparlinah, I., & Wiratno, A. (2023). Factors influencing the behavior of young investors’ investment decisions: The emerging market analysis [Special issue]. Corporate & Business Strategy Review, 4(2), 280–288. https://doi.org/10.22495/cbsrv4i2siart7